Dell seeks services clout from cloud
update SINGAPORE--Dell is enhancing its managed services business with a software-as-a-service delivery platform, which it says can help clients gain cost savings of up to 40 percent.
Stephen Schuckenbrock, president of Dell's services business, said in a media briefing Tuesday that the shift is a result of integrating capabilities from the recent acquisitions of companies including MessageOne, Silverback and Everdream.
Dell, said Schuckenbrock, defines its services business as "essentially everything about optimizing x86 infrastructure" of clients.
Under the new approach, the vendor pushes out applications such as patch management, backup and recovery and e-mail archiving, ala carte instead of bundling them in different subscription groups. Clients can "turn on and turn off" the services, which are offered in the cloud, said Schuckenbrock.
The shift in model, he added, is attractive to large enterprises, as well as small and midsize businesses (SMBs). Customers are moving away from mega deals that lock them in for a number of years, and also want flexibility in choosing the services they require.
"[The approach] is very consistent with the way Dell has delivered value to customers in the past," Schuckenbrock noted, adding that the company's chairman and CEO Michael Dell had founded the company by customizing components in PCs for customers.
Such a model can help customers achieve up to 40 percent cost savings, based on Dell's experience, said Schuckenbrock. The level of savings, however, is not the same for every customer.
Dell's services shift comes on the back of its recent first quarter earnings call, where its global services business grew 13 percent.
Tim Griffin, Dell's vice president for solutions and services in the Asia-Pacific and Japan region, noted that the region's services growth was nearly double that worldwide. He told ZDNet Asia that headcount is expected to grow in the region, based on its strong services growth.
According to Schuckenbrock, Dell is also setting up a "major control center" for services offered in the cloud. Located in Malaysia's Cyberjaya, the facility is one of Dell's network operating centers and would serve customers in Asia and beyond as well as support the company's operations.
Dell, said Schuckenbrock, is already working with its large multinational customers using the new services model--one is "a large customer that will have 50,000 of their users in India all cut over to this platform within the next few months".
However, SMB customers in the Asia-Pacific region will have to wait till "the early part" of Q1 2009.
He explained: "In terms of small, medium customers where you're really getting thousands of touch points, we're not ready for that and we'll start that next year."